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Original poster

anyone know whether the banks will still lend 4 x joint income?

36 replies

mummyjaguar · 21/04/2008 11:43

we've sold and want to buy a forever house but have been working on the basis that we'll be able to borrow 4 x joint income.

anyone know if thats still possible. i could phone a few banks but its so time consuming

OP posts:
NorthernLurker · 21/04/2008 11:45

Just phone a broker and get them to do all that for you!

Original poster
mummyjaguar · 21/04/2008 11:46

they'll then hassle me constantly though and we're probably going into rented for at least six months.

OP posts:
MissingMyHeels · 21/04/2008 11:47

It's not so much about how many times your salary they will lend it's about the percentage terms of what you are borrowing.

Do you have a deposit? They won't do anything more than a 90% mortgage at present so providing you have a 10% deposit you should be fine.

Original poster
mummyjaguar · 21/04/2008 11:49

yes we have 300k equity so should be ok there. want to borrow about 500k but can't work out in my head what that is in percentage terms

OP posts:
MissingMyHeels · 21/04/2008 11:55

I think you'd be fine with that - but I am not a bank so may be worth just phoning your current bank to see what they say. (Think is a 60 something % mortgage you'd be asking for - am crap too!)

ROSEgarden · 21/04/2008 11:58

once you can put down a certain percentage of LTV they are very appeasing..if you ring a finiancial advisor(i havea good one but we're in teesside) they will look at how they can make it work for you then show you the figures..just make sure you can actually afford the payments AND live properly

Fimbo · 21/04/2008 12:03

Isn't there a MN'r dp a broker or something. No fees to MN'rs iirc. Lilyloo?

Hang on will check.......

Pavlovthecat · 21/04/2008 12:05

unlikely I would say. mortgage lenders etc have tightened there belts so much now, but its worth asking at least isnt it?

Fimbo · 21/04/2008 12:06

here

noddyholder · 21/04/2008 12:09

depends on your deposit and credit rating.I think it will be hard though.The Bank of england is bailing the banks out but not allowed to use it for new lending so I feel they will be trying to attract savers not borrowers so criteria will still be tight.

Original poster
mummyjaguar · 21/04/2008 12:13

We have a good credit rating and no debts at all. I'm going to have to bite the bullet and call someone though aren't i.

Halifax said they'd lend us £695k before this all started. I nearly died of shock. Then spent half a day on rightmove daydreaming about mansions.

OP posts:
noddyholder · 21/04/2008 12:20

will 4x put you under strain motnh on month?If not and it is a forever house it will be fine you shoudl get a bargain atm

Original poster
mummyjaguar · 21/04/2008 12:25

not a strain on interest only. i know that sets alarm bells ringing but we're very disciplined and overpay on our mortgage every month.

and we're reasonably high earners with incomes that should keep increasing for a while yet.

once we have to pay school fees it will be a bit more difficult.

aagh i'm worrying myself now. good job i cn't find a house to buy!

OP posts:
noddyholder · 21/04/2008 12:27

Interest only is sub prime in the US!I would only go there temporarily not if you are going to need school fees aswell!Not sure now as I am a strict believer in interest only being a way of saying you can't afford it.

NorthernLurker · 21/04/2008 12:29

Interest only - with property prices likely to fall? I wouldn't go there tbh - and if you have school fees you want to pay as well I think you should restrict your dreaming and go for a house that is perfectly ok rather than amazing!

bringmesunshine · 21/04/2008 12:32

I Wouldn't have interest only. We have a large mortgage however it is repayment both DH and myself wouldn't consider it on the main property.

Have it on a property we rent out though

Original poster
mummyjaguar · 21/04/2008 12:33

I think we can afford it. We bring home just over 6k a month. mortage on interest only was about 2200 i think (must check again) and we will overpay by £800 ish. We offset every penny we have including the DCs money and tat saves us a lot.

I don't believe in repayment mortgages. They tie up your money unnecessarily and in the early years the amount of capital you are paying off is tiny. There are better ways of going about it nowadays.

Need to check the figures again. We've been looking for a house for such a long time now.

OP posts:
noddyholder · 21/04/2008 12:34

with 300k we are hoping to be mortgage free and am in the south east

Original poster
mummyjaguar · 21/04/2008 12:36

we could be mortgage free i guess. god knows what we'd do with the money though. i think we'd fritter it away if we had that much disposable income every month

OP posts:
Original poster
mummyjaguar · 21/04/2008 12:38

feeling bad making comments like that when so many are struggling

OP posts:
titchy · 21/04/2008 12:39

We borrowed 5 x with Alliance and Leicester a few months ago..... I think they are one of the few lenders still doing higher multiples, though I doubt they'd do 5 x now, but probaby would do 4x. There's a link on their website which calculates how much they will lend you.

titchy · 21/04/2008 12:41

here

Original poster
mummyjaguar · 21/04/2008 12:46

omg titchy they say 711k.
that really is irresponsible lending.

OP posts:
NorthernLurker · 21/04/2008 12:50

I just tried that - they would lend us 90,000 more than the mortgage we are hoping to take on! There is no way we could afford that - I am horrified tbh!

noddyholder · 21/04/2008 12:51

Ring them as some online deals have been pulled better to speak to someone.